Disney-owned ESPN (DIS) and the NFL are reportedly close to finalizing a major deal for ESPN to acquire NFL Media, which operates NFL Network and other league-owned content platforms, according to The Athletic. This comes as sports media firm ESPN prepares to launch its new direct-to-consumer streaming service, called “The Next Era,” later this fall at a price of $29.99 per month. While the agreement has not been signed yet, sources cited by The Athletic say that discussions are further along than ever, with NFL owners being notified that they may need to vote on the deal soon.
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If approved, the acquisition would give ESPN control over NFL Network, the Red Zone Channel, and additional media properties, which would significantly boost its streaming capabilities and negotiating leverage with cable providers. This potential move is part of ESPN’s strategy of adapting to changing viewing habits, as traditional TV subscribers decline in favor of streaming services like Netflix (NFLX) and YouTube TV (GOOGL).
Interestingly, the NFL’s media assets have been available for sale for years. With NFL games dominating U.S. television ratings, accounting for 72 of the top 100 programs in 2024, the partnership could improve ESPN’s position in the competitive sports media market. It may also create new opportunities to integrate features like sports betting and fantasy football into ESPN’s growing digital platform.
Is DIS Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on DIS stock based on 16 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average DIS price target of $134 per share implies 9.5% upside potential.
